How many IRAs can you have?
There is no legal limit on the number of Individual Retirement Accounts (IRA) you can open. You can hold a traditional IRA, a Roth IRA, and a SEP IRA simultaneously — at the same institution or different ones. The constraint is not how many accounts you open, but how much you contribute across all of them each year.
Is there a limit on how many IRAs you can open?
No. The IRS sets no restriction on the number of Individual Retirement Accounts you can open or maintain. You may have multiple IRAs of the same type at different institutions, or multiple types — traditional, Roth, SEP — at the same time.
What the IRS does limit is your annual contribution. For 2026, the combined maximum contribution to all your traditional and Roth IRAs is $7,500 per year, or $8,600 if you are age 50 or older, per IRS Publication 590-A. That cap is shared across accounts — opening a second IRA does not give you additional contribution room.
Under IRS rules, excess contributions may be subject to a 6% excise tax for each year the excess remains in the account. Excess contributions — plus any net income attributable to them — can be withdrawn by the tax filing deadline (including extensions) to avoid the penalty.
Starting an IRA is a major step in the marathon to a comfortable retirement. M1 offers traditional, Roth, and SEP IRAs all in one place.
How many Roth IRAs can you have?
You can hold as many Roth IRA accounts as you choose to open. The number of accounts does not affect your contribution limit — the same $7,500 combined cap ($8,600 age 50+) applies across all your traditional and Roth IRAs.
Two constraints apply specifically to Roth IRA contributions:
Contribution limit: The $7,500 ($8,600 age 50+) annual cap is shared with any traditional IRA contributions you make in the same year.
Income eligibility: The ability to contribute directly to a Roth IRA phases out at higher income levels. For 2026, contributions phase out for single filers with modified adjusted gross income (MAGI) between $153,000 and $168,000, and for married filing jointly between $242,000 and $252,000. Above those thresholds, direct Roth IRA contributions are not permitted under IRS rules. A backdoor Roth conversion may be available at higher income levels — consult a tax professional to evaluate your situation.
Source: IRS Publication 590-A
Can you have both a Roth and traditional IRA?
Yes. Holding both a Roth IRA and a traditional IRA at the same time is allowed. The two account types serve different tax purposes, and investors may use them together as part of a broader retirement strategy.
The core constraint: contributions to both accounts combined cannot exceed the annual IRA limit. Contributing $4,000 to a traditional IRA (or Roth IRA )in 2026 means a maximum of $3,500 more can go to your Roth IRA (or traditional IRA) — not $7,500 ($8,600 age 50+) to each.
Here’s how the two account types compare:
| Traditional IRA | Roth IRA | |
| Contributions | May be tax-deductible, depending on income and workplace plan access | After-tax — no deduction |
| Withdrawals in retirement | Taxed as ordinary income | Qualified withdrawals are tax-free |
| Required Minimum Distributions (RMDs) | April 1 of the year following the year you turn age 73 | None during the account owner’s lifetime |
| Income limits | None for contributions; deductibility phases out at higher incomes for those with a workplace retirement plan | Direct contributions phase out above income thresholds (see above) |
| Early withdrawal | 10% penalty on distributions before age 59½ (exceptions apply) | Contributions (original, not converted amounts) can generally be withdrawn penalty-free at any time; converted amounts may be subject to a 10% penalty if withdrawn within five years of conversion; earnings have additional conditions |
| Costs & Fees | Vary by custodian and investment selection; account maintenance fees, investment expense ratios, and transaction costs may apply | Same — fees vary by custodian and investment selection; compare fee schedules before opening an account |
Source: IRS Topic No. 451 — Individual Retirement Arrangements
Both account types involve investment risk. Contributions and earnings can lose value, and tax treatment depends on individual circumstances. The above is a general comparison, not tax advice.
IRA contribution limits across multiple accounts
The 2026 IRA contribution limits per IRS Publication 590-A and IRS Publication 560:
| Account type | 2026 limit (under 50) | 2026 limit (age 50+) |
| Traditional IRA + Roth IRA (combined total) | $7,500 | $8,600 |
| SEP IRA | Lesser of 25% of net self-employment income or $70,000 | Same — no additional catch-up |
| SIMPLE IRA | $17,000 | $21,000 (age 60+$22,500) |
SEP and SIMPLE IRA limits are separate from the traditional/Roth cap. A self-employed investor may contribute to a SEP IRA up to its limit and still make Traditional/Roth IRA contributions in the same year, subject to the $7,500 ($8,600 age 50+) combined cap on the Traditional/Roth IRA. IRS limits are adjusted periodically for inflation — verify current figures at IRS.gov before contributing.
What to consider when managing multiple IRA accounts
Some investors maintain IRAs at more than one institution — for example, a rollover IRA from a former employer’s 401(k) alongside an active Roth IRA. Some investors even hold multiple accounts of the same type at different custodians to access different investment options.
Contribution tracking. The $7,500 ($8,600 age 50+) combined cap applies across all accounts. Going over by even a dollar triggers a 6% excise tax for every year the excess sits there.
RMD calculation. Traditional IRAs each carry Required Minimum Distributions starting April 1 of the year following the year you turn age 73. You can pull the full RMD from one account, but the math has to account for all of them.
Frequently asked questions
Yes. The annual IRA contribution limit ($7,500 in 2026, $8,600 age 50+) and the 401(k) employee contribution limit ($24,500 in 2026) are set separately and do not reduce each other. Having access to a workplace retirement plan may, however, limit the deductibility of traditional IRA contributions depending on your income. Roth IRA eligibility is determined by income, not by whether you participate in a workplace plan.
IRA contribution limit source: IRS Publication 590-A. 401(k) employee contribution limit source: IRS Topic No. 424.
Investing involves risk. This answer is educational and is not personalized tax advice.
Yes, provided contributions to both combined do not exceed the annual limit — $7,500 in 2026, or $8,600 for those age 50 and older. Roth IRA contributions are also subject to income eligibility requirements. If you exceed the combined limit, the IRS applies a 6% excise tax on the excess for each year it remains in the account.
Source: IRS Publication 590-A
Investing involves risk. This answer is educational and is not personalized tax advice.
Excess contributions are subject to a 6% excise tax per year until corrected, per the IRS. To remove the excess, you can withdraw the excess amount plus any attributable earnings by the tax filing deadline, including extensions. A tax professional can help calculate the correct withdrawal amount.
Investing involves risk. This answer is educational and is not personalized tax advice.
The M1 line
M1 offers traditional IRA, Roth IRA, and SEP IRA accounts. Get started with an M1 IRA here.
M1 charges $3/month for clients with an IRA who are not already charged a platform fee or do not meet platform fee exemptions – see the M1 Fee Schedule for details.
Investing involves risk, including the possible loss of principal. This content is for educational purposes only and does not constitute personalized financial or tax advice. IRA eligibility, contribution limits, and tax treatment depend on individual circumstances and are subject to IRS rules, which change periodically. Verify current-year limits at IRS.gov and consult a qualified tax or financial professional before making decisions about your retirement accounts.
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